Download actions of these competitors could adversely affect - Kimberly

actions of these competitors could adversely affect our financial results. It may be necessary for us to lower prices on our products
and increase spending on advertising and promotions, which could adversely affect our financial results.
We may be unable to anticipate or adequately respond to changes in consumer demand for our products. Demand for our products
may change based on many factors, including shifting consumer purchasing patterns to lower cost options such as private-label
products and mid to lower-tier value products, low birth rates in certain countries due to slow economic growth or other factors,
negative consumer response to pricing actions or changes in consumer trends or habits. If we experience lower sales due to changes
in consumer demand for our products, our earnings could decrease.
Our ability to develop new products is affected by whether we can successfully anticipate consumer needs and preferences, develop
and fund technological innovations, and receive and maintain necessary patent and trademark protection. In addition, we incur
substantial development and marketing costs in introducing new and improved products and technologies. The introduction of a
new consumer product (whether improved or newly developed) usually requires substantial expenditures for advertising and
marketing to gain recognition in the marketplace. If a product gains consumer acceptance, it normally requires continued advertising
and promotional support to maintain its relative market position. Some of our competitors may spend more aggressively on
advertising and promotional activities, introduce competing products more quickly and respond more effectively to changing
business and economic conditions. We may not be successful in developing new or improved products and technologies necessary
to compete successfully in the industry, and we may not be successful in advertising, marketing, timely launching and selling our
products. Also, if we fail to perfect or successfully assert our intellectual property rights, we may be less competitive, which could
adversely affect our business, financial results and financial condition.
Increasing dependence on key retailers in developed markets and the emergence of new sales channels may adversely affect
our business.
Our products are sold in a highly competitive global marketplace, which continues to experience increased concentration and the
growing presence of large-format retailers and discounters. With the consolidation of retail trade, especially in developed markets
such as the U.S., Europe and Australia, we are increasingly dependent on key retailers, and some of these retailers, including largeformat retailers, may have significant bargaining power. They may use this leverage to demand higher trade discounts or allowances
which could lead to reduced profitability. We may also be negatively affected by changes in the policies of our retail trade customers,
such as inventory de-stocking, limitations on access to shelf space, delisting of our products, additional requirements related to
safety, environmental, social and other sustainability issues, and other conditions. If we lose a significant customer or if sales of
our products to a significant customer materially decrease, our business, financial condition and results of operations may be
adversely affected. In addition, the emergence of new sales channels may affect customer preferences and market dynamics and
could adversely impact our financial results. These new channels include sales of consumer and other products via e-commerce,
as well as the growth of large-format retailers and discounters that exclusively sell private-label products.
Damage to the reputation of Kimberly-Clark or to one or more of our brands could adversely affect our business.
Developing and maintaining our reputation, as well as the reputation of our brands, is a critical factor in our relationship with
consumers, customers, suppliers and others. Our inability to address adverse publicity or other issues, including concerns about
product safety, quality, efficacy or similar matters, or breaches of consumer, customer, supplier, employee or other confidential
information, real or perceived, could negatively impact sentiment towards us and our products and brands, and our business and
financial results could suffer. Consumers increasing use and reliance on social media for information could increase the risk of
adverse publicity, potentially with negative perception of our products or brands. Our business and results could also be negatively
impacted by the effects of a significant product recall, product-related litigation, allegations of product tampering or contamination,
the distribution and sale of counterfeit products, or a failure or breach of our information technology systems.
Government regulations and enforcement, and potential litigation, could have an adverse effect on our financial results.
As a global company, we are subject to many laws and governmental regulations across all of the countries in which we do business,
including laws and regulations involving marketing, antitrust, anti-bribery or anti-corruption, product liability, environmental,
intellectual property or other matters, as well as potential litigation or administrative actions.
If we are unable to comply with all laws and regulations, it could negatively impact our reputation and our business results. We
cannot provide assurance that our internal control policies and procedures, and ethics and compliance program will always protect
us from acts committed by our employees or agents. Adverse regulatory action, including a recall, regulatory or other governmental
investigation, or product liability or other litigation may also adversely affect our financial condition and business operations.
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KIMBERLY-CLARK CORPORATION - 2016 Annual Report